The supposed bull run of Euro against the greenback seems to be ending. What appears to be unraveling, and probably in its terminal stage, is wave B of a flat. Once this upward drive comes to an end, which appears inevitable for now, the final down leg, wave C, should ensue. All indicators appear to be in line with this, as stochastics and MACD seem congruent and overbought. Normally this congruency should complement the signals and allow for a directly correlational price action, which appears most surely down for now. This may not bode too well for the Euro, which has been weathering harshest of storms as of late, as again close to a US$ Euro parity may be reached. However, pricing indications are for a below parity price region for the Euro, before a final pull back.
EUR USD Line Chart
Reviewing the PNF chart, the ominous signs are clear for the Euro. For example, the count which should take the parity down below 1 is still clearly activated. Also, the risk reward ratio is 3 for this occurrence. So the bearish implications for the currency have not dissipated. But interestingly, there is a possibility that the intermediate trend may break after this. A full flat correction would have run its course and this potentially then should bring about a rebound. The confluence of factors probably will not favor the greenback after this intermediate run is over.
